Performance in the sector is largely driven by the supply and demand for worldwide energy. Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops. Furthermore, this sector is sensitive to political events, which historically have driven changes in the price of oil.
The Energy and Natural Resources sector must cope with many, sometimes unique issues that pose a considerable challenge for Finance. These include remote and dispersed operations, tough and varied political and regulatory environments, the finite nature of exploration finds and significant merger and acquisition activity.
Within energy our focus is among others on:
- Traditional energy
- Alternative energy
- Energy monitoring